Dr Shashank M Hiremath

Dear Readers,   Greetings of the day!!   Elliott Wave Theory is a popular technical analysis approach used to analyse financial markets, including the Indian stock market. Developed by Ralph Nelson Elliott in the 1930s, the theory suggests that financial markets move in predictable patterns or waves.   According to Elliott Wave Theory, market price movements consist of alternating waves of expansion and contraction, which are driven by investor psychology and market sentiment. These waves are divided into two types: impulse waves and corrective waves.   Impulse waves, also known as motive waves, are the larger waves that move in the direction of the overall trend. They are further subdivided into five smaller waves, labelled as 1, 2, 3, 4, and 5. Waves 1, 3, and 5 represent the upward movement of the trend, while waves 2 and 4 are the corrective waves that retrace some of the price movement.   Corrective waves, on the other hand, are the smaller waves ...